by
Gus Iversen, Editor in Chief | July 09, 2025
Astrana Health has finalized its acquisition of Prospect Health in a $708 million deal, below the previously announced $745 million.
Prospect Health operates a value-based care network with more than 11,000 providers across Southern California, Texas, Arizona, and Rhode Island. Its services span Medicare Advantage, Medicaid, and commercial lines of business, covering roughly 600,000 members. The organization also runs a California Restricted Knox-Keene-licensed health plan, a management services organization, a specialty pharmacy, and an acute care hospital.
The updated purchase price reflects a negotiated reduction under the terms of the original agreement. Astrana said the acquisition supports its strategy of expanding access to coordinated, cost-effective care nationwide.
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“We are excited to welcome Prospect Health's physicians, providers, and team members to Astrana Health,” said Brandon Sim, president and CEO of Astrana. “Together, we will further accelerate our mission to drive consistent, coordinated, high-quality patient outcomes at scale, ultimately driving greater value across the healthcare ecosystem.”
Astrana reiterated its expectation that Prospect will contribute about $1.2 billion in revenue and $81 million in adjusted EBITDA annually. It also expects to realize between $12 million and $15 million in synergies over the next 12 to 18 months.
Following the acquisition, Astrana updated its 2025 full-year revenue guidance to between $3.1 billion and $3.3 billion and adjusted EBITDA to a range of $215 million to $225 million. The company said it is maintaining its previously issued second-quarter forecast.
The transaction was financed in part through a term loan arranged by Truist Securities. J.P. Morgan served as Astrana’s exclusive financial advisor. Astrana now carries approximately $700 million in net debt and aims to reduce its net leverage ratio below 2.5x within 18 months.
The transaction closed July 1, according to an announcement from the Alhambra, California-based company
